Caesarstone Ltd. Files 20-F Annual Report

TL;DR

<b>Caesarstone Ltd. filed its 2023 annual 20-F report, detailing financial performance, tax assets, and impairment charges.</b>

AI Summary

Caesarstone Ltd. (CSTE) filed a Foreign Annual Report (20-F) with the SEC on March 6, 2024. Caesarstone Ltd. filed its annual 20-F report on March 6, 2024, for the period ending December 31, 2023. The company has tax loss carry-forwards totaling approximately $141,560 with no expiration date. Non-cash pre-tax impairment charges recognized in 2023 were $28,472, and in 2022 were $26,429. Customer relationships have an estimated economic useful life of approximately 8 years, amortized straight-line. The company repaid its credit line outstanding as of December 31, 2022, in Israeli banks during 2023.

Why It Matters

For investors and stakeholders tracking Caesarstone Ltd., this filing contains several important signals. The filing provides a comprehensive overview of Caesarstone's financial position and operational details for the fiscal year 2023, which is crucial for investors to assess the company's performance and future outlook. Details on tax loss carry-forwards and impairment charges offer insights into potential future tax benefits and asset valuations, impacting the company's profitability and balance sheet.

Risk Assessment

Risk Level: medium — Caesarstone Ltd. shows moderate risk based on this filing. The filing contains detailed financial information, including impairment charges and lease accounting, which requires careful analysis to fully understand the company's financial health and potential risks.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F filing to assess Caesarstone's performance and strategic direction.

Key Numbers

• 2023-12-31 — Period of Report (Conformed period of report)
• 2024-03-06 — Filed As Of Date (Conformed filing date)
• 141,560 — Tax Loss Carry-forwards (Total tax loss carry-forwards)
• 28,472 — Impairment Charges (2023) (Non-cash pre-tax impairment charges recognized in 2023)
• 26,429 — Impairment Charges (2022) (Non-cash pre-tax impairment charges recognized in 2022)
• 8 — Customer Relationships Useful Life (Estimated economic useful life of customer relationships)

Key Players & Entities

• Caesarstone Ltd. (company) — Filer of the 20-F report
• 2023 (date) — Reporting period end date
• March 6, 2024 (date) — Filing date
• $141,560 (dollar_amount) — Total tax loss carry-forwards
• $28,472 (dollar_amount) — Non-cash pre-tax impairment charges in 2023
• $26,429 (dollar_amount) — Non-cash pre-tax impairment charges in 2022
• 8 years (duration) — Estimated economic useful life of customer relationships

FAQ

Risk Factors

• Fair Value of Redeemable Non-Controlling Interest [medium — financial]: The change in fair value of redeemable non-controlling interest, valued using significant unobservable inputs (Level 3), was included in note 2x, requiring assumptions about forecast cash flows, discount rate, and volatility.
• Provision for Loss Contingencies and Lease Accounting [medium — financial]: The company's provisions are mainly derived from labor-related provisions, loss contingencies, and lease accounting in accordance with ASC842.
• Provision for Slow Moving Inventory and IRS Section 263(a) [low — financial]: Provisions are also derived from slow-moving inventory and IRS section 263(a) requirements.
• Non-Cash Pre-Tax Impairment Charges [medium — financial]: The company recognized non-cash pre-tax impairment charges of $28,472 in 2023 and $26,429 in 2022.

Key Financial Figures

• $1.00 — al report are translated at the rate of $1.00 = NIS 3.627, the representative exchang

Filing Documents

• zk2431067.htm (20-F) — 4437KB
• exhibit_1-1.htm (EX-1.1) — 173KB
• exhibit_2-1.htm (EX-2.1) — 47KB
• exhibit_4-13.htm (EX-4.13) — 115KB
• exhibit_8-1.htm (EX-8.1) — 6KB
• exhibit_12-1.htm (EX-12.1) — 8KB
• exhibit_12-2.htm (EX-12.2) — 8KB
• exhibit_13-1.htm (EX-13.1) — 7KB
• exhibit_15-1.htm (EX-15.1) — 4KB
• exhibit_15-2.htm (EX-15.2) — 3KB
• exhibit_15-3.htm (EX-15.3) — 3KB
• exhibit_97-1.htm (EX-97.1) — 32KB
• image0.jpg (GRAPHIC) — 232KB
• image00001.jpg (GRAPHIC) — 35KB
• 0001178913-24-000849.txt (&nbsp;) — 20146KB
• cste-20231231.xsd (EX-101.SCH) — 99KB
• cste-20231231_cal.xml (EX-101.CAL) — 99KB
• cste-20231231_def.xml (EX-101.DEF) — 425KB
• cste-20231231_lab.xml (EX-101.LAB) — 1172KB
• cste-20231231_pre.xml (EX-101.PRE) — 652KB
• zk2431067_htm.xml (XML) — 4395KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes No PRELIMINARY NOTES Introduction As used herein, and unless the context suggests otherwise, the terms "Caesarstone," "Company," "we," "us" or "ours" refer to Caesarstone Ltd. and its consolidated subsidiaries. In this document, references to "NIS" or "shekels" are to New Israeli Shekels, and references to "dollars," "USD" or "

Risk Factors

Risk Factors 1 ITEM 4: Information on the Company 32 A. History and Development of the Company 33 B. Business Overview 44 C. Organizational Structure 44 D. Property, Plants and Equipment 45 ITEM 4A: Unresolved Staff Comments 46 ITEM 5: Operating and Financial Review and Prospects 47 A. Operating Results 47 B. Liquidity and Capital Resources 55 C. Research and Development, Patents and Licenses 57 D. Trend Information 58 E. Critical Accounting Estimates 58 ITEM 6: Directors, Senior Management and Employees 63 A. Directors and Senior Management 63 B. Compensation 67 C. Board Practices 71 ITEM 7: Major Shareholders and Related Party Transactions 85 A. Major Shareholders 85 B. Related Party Transactions 87 C. Interests of Experts and Counsel 92 ITEM 8: Financial Information 93 A. Consolidated Financial Statements and Other Financial Information 93 B. Significant Changes 94 ITEM 9: The Offer and Listing 95 A. Offer and Listing Details 95 B. Plan of Distribution 95 C. Markets 95 D. Selling Shareholders 95 E.

Dilution

Dilution 95 F. Expenses of the Issue 95 ITEM 10: Additional Information 95 A. Share Capital 95 B. Memorandum and Articles of Association 95 C. Material Contracts 95 D. Exchange Controls 96 E. Taxation 96 F. Dividends and Paying Agents 105 G. 105 H. Documents on Display 105 I. Subsidiary Information 105 J. Annual Report to Security Holders 105 (i) ITEM 11:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 106 ITEM 12:

Description of Securities Other Than Equity Securities

Description of Securities Other Than Equity Securities 107 PART II 108 ITEM 13: Defaults, Dividend Arrearages and Delinquencies 108 ITEM 14: Material Modifications to the Rights of Security Holders and Use of Proceeds 108 ITEM 15:

Controls and Procedures

Controls and Procedures 108 ITEM 16: Reserved 109 ITEM 16A: Audit Committee Financial Expert 109 ITEM 16B: Code of Ethics 109 ITEM 16C: Principal Accountant Fees and Services 109 ITEM 16D: Exemptions from the Listing Standards for Audit Committees 109 ITEM 16E: Purchases of Equity Securities by the Company and Affiliated Purchasers 109 ITEM 16F: Change in Registrant's Certifying Accountant 110 ITEM 16G: Corporate Governance 110 ITEM 16H: Mine Safety Disclosures 110 ITEM 16I: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 110 ITEM 16J: Insider Trading Policies 110 ITEM 16K: Cybersecurity 110 PART III 112 ITEM 17:

Financial Statements

Financial Statements 112 ITEM 18:

Financial Statements

Financial Statements 112 ITEM 19: Exhibits 112 (ii) PART I ITEM 1: Identity of Directors, Senior Management and Advisers Not applicable. ITEM 2: Offer Statistics and Expected Timetable Not applicable. ITEM 3: Key Information A. [Reserved] B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D.

Risk Factors

Risk Factors Our business faces significant risks and uncertainties. You should carefully consider all the information set forth in this annual report and in our other filings with the United States Securities and Exchange Commission (the " SEC "). Our business, financial condition and results of operations could be materially and adversely affected by any of these risks. In that event, the trading price of our ordinary shares would likely decline, and you might lose all or part of your investment. This report also contains forward-looking statements that involve risks and uncertainties. Our results could materially differ from those anticipated in these forward-looking statements, as a result of certain factors including the risks described below and elsewhere in this report and our other SEC filings. See also "Special Note Regarding

Forward-Looking Statements and Risk Factor Summary"

Forward-Looking Statements and Risk Factor Summary". Risk Factors Summary The following is a summary of the principal risks that could materially adversely affect our business, results of operations, and financial condition, all of which are more fully described below. This summary should be read in conjunction with the other information discussed in this Item 3.D, and should not be relied upon as an exhaustive summary of the material risks facing our business. Please carefully consider all of the information discussed in this Item 3.D. "Risk Factors" and elsewhere in this annual report for a more thorough description of these and other risks. Such risks include, but are not limited to: Downturns in the home renovation, remodeling and residential construction sectors or the economy generally; Adverse global conditions, including macroeconomic and geopolitical uncertainty, may negatively impact our financial results; The outcome of litigations including those regarding silicosis, other bodily injury claims or other legal proceedings in which we are involved, and our ability to use our insurance policy to cover damages; Laws and regulations relating to our production operations, or to hazards associated with crystalline silica containing surfaces, changes to such laws and regulations and their impact on us or on our value chain may adversely and materially affect our business; Our ability to effectively manage changes to our production and supply chain and effectively collaborate with PBP suppliers; Changes in the availability, prices, or suppliers of our raw materials, as well as constraints in the global supply, prices, and availability of transportation for raw materials, finished goods, and other essential products, can significantly impact our operations; 1 Our success in further expanding our product offering includes the introduction of new products and materials, along with exploring new applications; Disruptions to our information technology syste

View Full Filing

View this 20-F filing on SEC EDGAR